AMZN

Amazon Q1 2022 Earnings Report Recap · AMZN fell far short on earnings, matched on revenue · Amazon (AMZN) Financial Results: Analysis.

Amazon Web Services (AWS) revenue exceeded consensus estimates.12 These choices will be signaled globally to our partners and will not affect browsing data. Select personalised ads. Revenue of $18.3 billion from AWS, the company's high-margin cloud computing business, marked a 37% year-over-year (YOY) increase and beat analyst predictions. Investopedia does not include all offers available in the marketplace. Amazon stock fell by more than 9% in after-hours trading following the earnings release. To change or withdraw your consent choices for Investopedia.com, including your right to object where legitimate interest is used, click below. Earnings per share (EPS) were -$7.56, far below analyst predictions. Amazon said that AWS growth was driven by new commitments from customers across industries such as telecommunications, aerospace, sports, technology, and healthcare. Amazon's AWS business generates much higher margins than its e-commerce business. We also reference original research from other reputable publishers where appropriate. Amazon.com, Inc. (AMZN) reported mixed results in its Q1 FY 2022 earnings report.

Tech giant has seen a shopping slump and cost increases due to inflation, labor issues and supply chain challenges.

Amazon has a roughly 18% stake in the company and had a pretax loss of $7.6 billion due to its holdings. It said it expects its operating income for the current quarter to be between a loss of $1 billion and profit of $3 billion. It reported $7.87 billion in ad sales for the first quarter, up 23% from a year earlier. Workers at a second Staten Island facility are voting on unionization this week, and activists are targeting other warehouses throughout the country. The company may see additional cost pressures as it navigates continued attempts by warehouse employees to unionize. It fell to 12.9% during the last three months of 2021, according to Census Bureau data adjusted for seasonal factors. One bright spot continued to be the company’s cloud business, Amazon Web Services, where sales rose about 37% in the first quarter to $18.4 billion. The amount of products Amazon sold during the quarter was essentially flat from a year ago, and the company reported a 3% year-over-year drop in its online stores segment, which include product sales primarily on its flagship site and digital media content. It posted $7.7 billion in operating income during the second quarter of 2021. Mr. Olsavsky said the company is no longer constrained by labor or capacity issues. Revenue for the tech giant rose by about 7% for the January-to-March period, the slowest pace in about two decades as consumers returned to prepandemic habits and spent more money in person at stores. That’s the largest drop since the metric was first disclosed in 2016.

Analysts expect adjusted earnings of $8.35 per share on revenue of $116.5bn for the quarter ended 31 March, according to figures widely available on financial ...

It last carried out a stock split at the height of the dotcom era in 1999. “We would like to see CEO Andy Jassy on the earnings call and think this would be well received by investors. We also see revenue growth accelerating as the year progresses based on easing comparisons,” Morningstar’s Romanoff wrote. Lastly, strong momentum across the company’s cloud, third-party, advertising businesses should drive a steady margin expansion." Founded in 1995 by Jeff Bezos, Amazon started selling books online before expanding into products such as electronics, clothing, furniture and many other items. Amazon was the first company to offer cloud computing services in 2008 and offers a wide array of storage and computing services from its Amazon Web Services (AWS) business, with more than half of the company’s operating profit coming from AWS since 2014, according to CNBC.

Thank you for standing by. Good day everyone and welcome to the Amazon.com Q1 2022 financial results teleconference. [Operator instructions] Today's call is ...

But we made it through Q4 with the anticipation that we'll be able to hold our labor for Q1 and labor certainty would be a lot better and certain in our network. When you look out to the back part of the year, not asking for how you might guide, but there's a typical cadence to fulfillment expense build and employee build and headcount build into the back part of the year as you build the capacity toward the holidays. It's a combination of productivity at the employee level, but it's also a matter of productivity of the -- and harmonization of the network, having the right demand in the right -- excuse me, the right capacity and the right demand matched at the warehouse level and the transportation node level. In terms of the $4 billion number you're calling out, maybe the first part of the question would be, is that entirely the additional issues that are now front and center versus the issues we talked about from Q4 into first half of '22 from a logistics and supply chain standpoint, where we had talked about permanent versus transient cost nature of that $4 billion as you move through the first half of the year? And we also see some volatility in utility pricing for some of the energy costs in operating the AWS data centers. So there's a lot of -- you have to look at the unit data with -- keeping that in mind because there's a mix -- heavy mix issue. And we -- so noted step-downs in the run rate as soon as the middle of May hit last year. But we would expect some savings as you bring a lot of that transportation in-house, a lot of the delivery in-house. As the variant subsided in the second half of the quarter and employees returned from leave, we quickly transitioned from being understaffed to being overstaffed, resulting in lower productivity. As a reminder, in the second half of 2021, we were operating in a labor-constrained environment. Some of this is due to the impact of the Omicron variant in China and labor shortages at point of origin, and the start of the war in the Ukraine has contributed to high fuel prices. I'd like to start with a few comments on what we're seeing as we're coming out of the pandemic, both on the customer experience side and on the operating cost side in this current inflationary environment.